Help!! what should I do with €1000.00??

[diarmuidc]

I would suggest that €1,000 may be too small a sum to invest in shares, as transaction costs would eat into your €1,000, unless you're willing to put it all on one or two shares, which is a risky strategy.
.

Here's an option:

Capital : €1000.
Open [broken link removed] account -€0
Buy 40 VT shares (total world market ETF, annual mgt fee of 0.25%) fee = $29.95 cost of shares = $1242.80
Annual account fees = €0

=> total fees for duration of investment = $29.95

And now you are holding a very widely diversified portfolio (granted a small one) that you don't need to look at for the next 20 years.

One catch is that reinvesting the dividend (assuming that VT pays a dividend) might not be worth it. You'd need to check this out.

What's wrong with this approach?

 

[mercman]

In the same boat Danny, hard to get good advice here sometimes as you're looked down on if you're not a millionaire. I'm taking a punt and sticking a similar sum into one of our esteemed financial instittutions. Am prepared to lose it all but its worth a chance IMO. Good luck.

Baldyman, this is a most unfair post. I dfo not think that AA looks down on anybody regardless of their financial position. Look as to how many replies Danny has received.

 

[extopia]

Thanks guys the thing is I've got €9,000 Excluding the €1,000 euro freed up by the loan..... Ive no extending Loan NONE whatsoever

I'm not sure what you mean by 1,000 "freed up by a loan", or what an extending loan is. Do you mean you've consolidated some loans and ended up with 1,000 left over that you don't know what do do with?

If so, you might consider using it to pay down the new loan.

 

[baldyman27]

Mercman, I was a little harsh there alright, my apologies. I was looking for similar advice not so long ago and found that I got a lot of posts in reply which seemed to say that unless I knew what I was doing I shouldn't even consider buying shares. There are a lot of people out there in the same position, i.e. with a small amount of money, just a few grand, that are looking at the markets and thinking that they'd like to take a punt. Don't get me wrong, I haven't got a clue what I'm doing, haven't a notion of how the markets work and I don't think that just because I've made a few quid on my one and only punt that I'm now a successful investor. I took a gamble with a small amount of money and it paid off. Sometimes these threads seem to descend (or ascend!!) into a load of confusing stockmarket jargon that goes completely over the head of the OP. That said, there is a lot of good advice on AA too and have learned a lot from it.
You're dead right though, the OP has had a lot of replies and none of them disparaging, at least after my post! Would they all have been as simple and as supportive had I not posted?
Excellent site though and great information to be found in general.

 

[MortgageGuy]

you won't get rich on a grand investment, now may well be a good time to get into the market but there is a lot of volatility out there too. if you don't have a nest egg put away then perhaps the best thing to do would be to start one, keep it in the credit union or where ever you like, but if you don't have a fund in case you lose your job or something then this could be the start of one

 

[election0]

I am unemployed and have never had an awfull lot of money . I am from a working class area and hate snobery . I have managed to save some money but this was from living very well within my means and always seeking bargains etc . In all honesty I do not know a lot about investments and shares in fact I am a complete novice .

With all that said my inclination is that €1000,00 (One thousand Euro) is not a large enough amount to start off with . I am only now looking to start investing having saved $40,000 (forty thousand dollars) over a number of years . I would like to know how to go about investing this without changing it to Euros ?

 

[colm5]

I am unemployed and have never had an awfull lot of money . I am from a working class area and hate snobery . I have managed to save some money but this was from living very well within my means and always seeking bargains etc . In all honesty I do not know a lot about investments and shares in fact I am a complete novice .

With all that said my inclination is that €1000,00 (One thousand Euro) is not a large enough amount to start off with . I am only now looking to start investing having saved $40,000 (forty thousand dollars) over a number of years . I would like to know how to go about investing this without changing it to Euros ?

You should decide what type of risk you are willing to take before deciding what to do with this lump.